A Valid Reason for a Firm to Reduce or Eliminate

question 104

True/False

A valid reason for a firm to reduce or eliminate its cash dividends is if the tax laws have recently changed such that dividends are taxed at an investor's marginal rate while capital gains are tax exempt.

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Definitions:

Organization Guidelines

Frameworks or principles laid out by an organization to shape decisions, actions, and behaviors of its members.

Foundation Virtues

Foundation virtues are fundamental moral qualities considered essential for building a virtuous or ethically sound character, such as honesty, courage, and compassion.

Rollo May

An American existential psychologist known for his works on the importance of anxiety, existentialist thought in psychology, and the human condition.

Personal Values

The set of principles or standards of behavior that an individual considers important in their life.